Which of the Following Statements Is Not True

question 31

Multiple Choice

Which of the following statements is not true?

• A) A two-bin system allows a firm to not have to keep perpetual inventory records.
• B) Using perpetual inventory records results in different order quantities than using a two-bin system.
• C) In a two-bin system, units in the second bin are not used until the first bin is empty.
• D) In a two-bin system, the size of the second bin should equal the demand during replenishment lead time.
• E) Perpetual inventory records are appropriate when using the EPQ model.

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Definitions:

Supply And Demand Diagram

A graphical representation of the relationship between the quantities of a good that sellers are willing to sell and buyers are willing to buy, at various prices.

Negative Externality

A negative externality occurs when a product or decision costs a third party who did not choose to incur that cost.

Wooden Sculpture

A piece of art or decorative object carved from wood.

Safety Hazard

A condition in the workplace or environment that has the potential to cause harm or injury to people.